Future Market Insights expects sales in the Communications Platform as a Service market to reach USD $60 billion by 2032.

Further, demand registered in the Communications Platform as a Service market is set to increase at a CAGR of roughly 25.0% from 2022-2032.

These figures come as part of FMI's new research report, which also states that the market is anticipated to reach a valuation of USD$ 6,384.4 million by the end of 2023.

The research firm also notes that the growing demand for flexible communication platforms is likely to boost CPaaS product sales.

FMI refers to CPaaS offerings as cloud solutions that enable businesses to add real-time communication features to business applications.

These products are adaptable and scalable and bring together the latest integrated communication services into a single offering.

CPaaS combines a range of communication types, such as calls, emails, and SMS, for improved customer engagement.

Omni-channel methods for customer management have also come into play recently, which FMI says is set to boost the demand for CPaaS solutions in the banking and financial sector.

CPaaS offerings have demonstrated that they are a secure real-time communication platform across the banking and financial services industry because insurance firms, banks, and payment providers need a secure platform to provide fast and dependable services to customers while preventing fraud.

CPaaS products are gaining popularity, particularly in the banking sector, as these provide personalised offerings.

However, CPaaS services deliver onboarding features and text reminders to customers, minimising the risk of delinquency with compliance and security.

Moreover, implementing CPaaS products means fraud can be detected early through an outbound IVR facility.

These facilities come with additional options for immediate transfer to agents, providing secure financial transaction environments to customers.

FMI says this broad adoption is opening new opportunities for key players in the CPaaS market.

Key takeaways of FMI's new CPaaS report include:

• By solution, the CPaaS software segment is predicted to lead the global communications platform as a service market with a CAGR of 2% during the forecast period
• By enterprise size, the large enterprise segment is set to dominate with a CAGR of nearly 23% between 2022 and 2032
• By industry, the healthcare segment is anticipated to exhibit an astonishing CAGR of 31% in the forthcoming years
• By geography, North America had the largest market share of about 2% in the CPaaS industry in 2021
• The South Asia & Pacific region is expected to witness the highest growth rate of around 7% throughout the forecast period of 2022-2032

"Growing demand for customer communication and customer engagement across the BFSI and retail industries is expected to drive the global communications platform as a service market growth," says an FMI analyst.

The retail industry is a keen adopter of CPaaS solutions, using these offerings to adapt to the hybrid environment of modern-day purchase requirements.

Large-scale and consumer enterprises with multiple locations add cloud-based solutions that ensure call routing and SMS remains accurate depending on location, time and need.

In addition, both physical stores and online retailers are using CPaaS offerings as their main business software.

These software solutions are able to circulate customised information, initiate in-store event registrations, offer segmented discount codes, and send sales alerts.

Adding SMS with a voice to the communication strategy also ensures a bigger product footprint onto consumers.

Further, having up-to-date and flexible real-time integrated communication services allows small and large-scale retail enterprises to embrace the rapidly evolving cloud communications market.

FMI says the retail industry's growing adoption of these offerings is fueling market growth this increase is expected to continue in the near future.

Companies are also using chatbots and chat applications that creatively interact with customers to improve the interaction process in real time.

Chatbots and WhatsApp business APIs are two of the most popular use cases for CPaaS offerings.

These chatbots have been strategically designed to generate desired results with statistical information from the preceding information.

FMI says chatbots are becoming more widespread among businesses looking for meaningful customer engagement because they are straightforward to put in place.

Some organisations have also integrated self-service chatbots to answer simple questions through conversational interfaces.

One of the CNBC reports notes that bots will take care of roughly 75-90% of the questions by the end of 2024.

The growing adoption and application of chatbots is expected to dramatically increase the demand for CPaaS solutions, according to FMI.